the facts or proxy bidding 101from fleabay
The proxy bidding system is a method whereby a buyer enters in the absolute most that she is willing to pay for an item. At that moment, eBays servers take over. If I am the highest bidder, then I take the lead, but only enough to beat the former leader by one increment, or exactly the amount of the opening bid, if I am the first bidder. If not, then the current leader uses his True Max to Proxy bid enough to maintain the lead.
A key factor in proxy bidding is the amount you have bid, called your True Max Bid, keeps itself as much of a secret as it can. At any given time, it shows only enough of itself to take the lead. Only if somebody outbids you will your True Max be revealed, then the other True Max becomes a secret. If you are the current leader, you can still bid, and eBay will simply increase your Proxy, and won't alter the amount of the current bid.
The only exception is if your old Proxy Bid was greater than the second-highest bidder by less than one increment. In this case, your current bid will rise until it is greater than the second highest bidder by one increment. In the case of tied proxy bids, the same thing happens, since eBay will recognize the early bid as the highest.
Once the auction is over, the highest bidder wins, and owes an amount equal to the second highest bidder plus one increment. The amount of the increment is defined by eBay and depends on the value of the second-highest bid. Any amount of the bid above and beyond the winning total is kept hidden. Nobody will ever know the amount of your True Max, even the seller. The only exception to this is if the difference between the highest and second highest bid is less than one increment.
Technically, any bid is a proxy bid, but the general convention is to call a bid a proxy only if it's the absolute most you are willing to pay for an item. Otherwise, we call it a lowball bid.
Note that if you are the only bidder, you will win and owe the amount of the opening bid. Even if you have bid multiple times, you still count as the only bidder. If the item opened for $1.00 and you bid $1000.00, and nobody else bid, you will win for $1.00
The proxy bidding system is a method whereby a buyer enters in the absolute most that she is willing to pay for an item. At that moment, eBays servers take over. If I am the highest bidder, then I take the lead, but only enough to beat the former leader by one increment, or exactly the amount of the opening bid, if I am the first bidder. If not, then the current leader uses his True Max to Proxy bid enough to maintain the lead.
A key factor in proxy bidding is the amount you have bid, called your True Max Bid, keeps itself as much of a secret as it can. At any given time, it shows only enough of itself to take the lead. Only if somebody outbids you will your True Max be revealed, then the other True Max becomes a secret. If you are the current leader, you can still bid, and eBay will simply increase your Proxy, and won't alter the amount of the current bid.
The only exception is if your old Proxy Bid was greater than the second-highest bidder by less than one increment. In this case, your current bid will rise until it is greater than the second highest bidder by one increment. In the case of tied proxy bids, the same thing happens, since eBay will recognize the early bid as the highest.
Once the auction is over, the highest bidder wins, and owes an amount equal to the second highest bidder plus one increment. The amount of the increment is defined by eBay and depends on the value of the second-highest bid. Any amount of the bid above and beyond the winning total is kept hidden. Nobody will ever know the amount of your True Max, even the seller. The only exception to this is if the difference between the highest and second highest bid is less than one increment.
Technically, any bid is a proxy bid, but the general convention is to call a bid a proxy only if it's the absolute most you are willing to pay for an item. Otherwise, we call it a lowball bid.
Note that if you are the only bidder, you will win and owe the amount of the opening bid. Even if you have bid multiple times, you still count as the only bidder. If the item opened for $1.00 and you bid $1000.00, and nobody else bid, you will win for $1.00
